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I've heard many different opinions of how far the market will drop. Someone today was saying that 7200 is the bottom another said 6500-6000 or so. I would gauge the market rebounding on the price of oil. I don't know where it will bottom at but oil should start going back up when the economy starts to pick up just because the economy runs on oil.http://finance.yahoo.com/q?s=^DJI
Massive 443 point sell off today. Anyone wanna bet we reach 6900 before Thanksgiving?
I've heard many different opinions of how far the market will drop. Someone today was saying that 7200 is the bottom another said 6500-6000 or so. I would gauge the market rebounding on the price of oil. I don't know where it will bottom at but oil should start going back up when the economy starts to pick up just because the economy runs on oil.
Where the market is at that time is anyone's guess.
Wall Street Crash of 1929
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"Black Tuesday" redirects here. For other uses, see Black Tuesday (disambiguation).
"Great Wall Street Crash" redirects here. For the book by John Kenneth Galbraith, see The Great Crash, 1929.
Crowd gathering on Wall Street after the 1929 crash.The Wall Street Crash of 1929,[1][2] also known as the 29 Crash,[3] the Crash of 1929,[4] the Great Crash of 1929,[5] the Great Crash of October 1929,[6] the Great Wall Street Crash of 1929,[7] 1929 Great Crash,[8] or the Great Crash, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and longevity of its fallout.[9]
Three phrases - Black Thursday, Black Monday, and Black Tuesday - are used to describe this collapse of stock values. All three are appropriate, for the crash was not a one-day affair. The initial crash occurred on Black Thursday (October 24, 1929), but it was the catastrophic downturn of Black Monday and Tuesday (October 28 and October 29, 1929) that precipitated widespread panic and the onset of unprecedented and long-lasting consequences for the United States. The collapse continued for a month.
Economists and historians disagree as to what role the crash played in subsequent economic, social, and political events. The Economist writes, "Briefly, the Depression did not start with the stockmarket [sic] crash."[10] On November 23, 1929, The Economist asked: "Can a very serious Stock Exchange collapse produce a serious setback to industry when industrial production is for the most part in a healthy and balanced condition? ... Experts are agreed that there must be some setback, but there is not yet sufficient evidence to prove that it will be long or that it need go to the length of producing a general industrial depression." But The Economist cautioned: "Some bank failures, no doubt, are also to be expected. In the circumstances will the banks have any margin left for financing commercial and industrial enterprises or will they not? The position of the banks is without doubt the key to the situation, and what this is going to be cannot be properly assessed until the dust has cleared away."[11]
The October 1929 crash came during a period of declining real estate values in America (which peaked in 1925) near the beginning of a chain of events that led to the Great Depression, a period of economic decline in the industrialized nations. This led to the institution of landmark financial reforms and new trading regulations.
At the time of the crash, New York City had grown to be a major metropolis, and its Wall Street district was one of the world's leading financial centers.The New York Stock Exchange (NYSE) was the largest stock market in the world.[citation needed]
The Roaring Twenties, which was a precursor to the Crash,[12] was a time of prosperity and excess in the city, and despite warnings against speculation, many believed that the market could sustain high price levels. Shortly before the crash, Irving Fisher famously proclaimed, "Stock prices have reached what looks like a permanently high plateau."[13] The euphoria and financial gains of the great bull market were shattered on Black Thursday, when share prices on the NYSE collapsed. Stock prices fell on that day and they continued to fall, at an unprecedented rate, for a full month.[14]
In the days leading up to Black Tuesday, the market was severely unstable. Periods of selling and high volumes of trading were interspersed with brief periods of rising prices and recovery. Economist and author Jude Wanniski later correlated these swings with the prospects for passage of the Smoot-Hawley Tariff Act, which was then being debated in Congress.[15] After the crash, the Dow Jones Industrial Average (DJIA) recovered early in 1930, only to reverse and crash again, reaching a low point of the great bear market in 1932. The Dow did not return to pre-1929 levels until late 1954,[16] and was lower at its July 8, 1932 level than it had been since the 1800s.[17]
Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even.
Richard M. Salsman
